Department for Transport

Transport: Exhaust Emissions

lord bradshaw: To ask Her Majesty's Government, further to the Written Answer byBaroness Vere of Norbiton on 11 March (HL1918), what assessment they have made of the case for urgently decarbonising the transport network; and what discussions they plan to have with the Rail Safety and Standards Board about prioritising that Board's workon the risks involved in expanding third rail electrification in order to complete such work by the end of 2020.

baroness vere of norbiton: The Government believes that we must accelerate rail decarbonisation to respond to the challenge of climate change. We will consider exploring some decarbonisation schemes as priorities as we develop our strategy. Officials regularly discuss with the Rail Safety and Standards Board its research to reduce the railway’s environmental impact, including work on third rail electrification. The Government will consider the findings of that work as they emerge during 2020.

European Aviation Safety Agency

lord empey: To ask Her Majesty's Government what discussions they had with the aviation sector before their decision to leave the European Union Aviation Safety Agency.

lord empey: To ask Her Majesty's Government what alternative arrangements will be put in place to secure aviation safety in the UK followingtheir decision to leave the European Union Aviation Safety Agency.

lord empey: To ask Her Majesty's Government what assessment they have made of the funding required to maintain aviation safety in the UKfollowing theirdecision to leave the European Union Aviation Safety Agency; and what will be the source of that funding.

lord empey: To ask Her Majesty's Government what assessment they have made of the access to global markets by UK manufacturers in the aviation sector as a result of their decision to leave the European Union Aviation Safety Agency.

lord empey: To ask Her Majesty's Government what plans they have to negotiate a bi-lateral Aviation Safety Agreement with the EU following their decision to leave the European Union Aviation Safety Agency.

lord empey: To ask Her Majesty's Government when they took the decision to leave the European Union Aviation Safety Agency.

baroness vere of norbiton: The Prime Minister has been clear that our future relationship with the EU must not entail any application of EU law in the UK or CJEU jurisdiction. Continued UK participation in the EASA system would have been inconsistent with this approach. This was set out in the UK’s approach to the negotiations published on 27 February. The EU also made it clear in its public mandate (25 February) that it is willing to negotiate regulatory cooperation on aviation safety but its mandate does not provide for UK participation in EASA. The Government regularly engages with industry and will continue to do so as the negotiations progress. This includes extensive engagement with the aerospace manufacturing sector during EU Exit preparations. We want to agree a Bilateral Aviation Safety Agreement (BASA) with the EU to minimise regulatory burdens for industry. This will facilitate the recognition of aviation safety standards, maintain high safety outcomes and enable continued regulatory cooperation between the UK and EU. The UK Civil Aviation Authority currently oversees most aspects of civil aviation safety in the UK. After the transition period the CAA will take on some additional functions from EASA and will continue to ensure that the UK has world-leading safety standards. The CAA has been preparing for the possibility of leaving the EASA system since the EU referendum in 2016, the CAA will continue to refine these plans over the coming months, and may require additional resources. Progress will be closely monitored.

Bus Services: North of England

lord greaves: To ask Her Majesty's Government how much of the £5 billion announced in the Budget 2020 on 11 March for bus services over the next five years will be allocated, or available, to the areas covered by Transport for the North; and what will be the role of Transport for the North in the allocation of this funding.

baroness vere of norbiton: The details of the £5 billion of new funding to overhaul bus and cycle links for every region outside London will be announced in the upcoming National Bus Strategy, to be published later this year at the Comprehensive Spending Review.

Bus Services: Finance

lord greaves: To ask Her Majesty's Government how much of the £5 billion announced in the Budget 2020 on 11 March for bus services over the next five years will be allocated, or available, to areas which do not have an elected mayor, a combined authority, or a strategic transport plan.

baroness vere of norbiton: The details of the £5 billion of new funding to overhaul bus and cycle links for every region outside London will be announced in the upcoming National Bus Strategy, to be published later this year at the Comprehensive Spending Review.

A56

lord greaves: To ask Her Majesty's Government whether the funding for new road proposals announced in the Budget 2020 on 11 March will include a new road from the eastern end of the M65 to join the A59 west of Skipton, the “A56 and village bypass”, or a part of that proposal.

baroness vere of norbiton: The Second Road Investment Strategy, published alongside the Budget, refers to the Central Pennines study which is continuing to consider how road connections from the eastern end of the M65 in Colne could be improved. No funding has been committed for the construction of any new infrastructure as a result of this study yet.

Department for Digital, Culture, Media and Sport

Arts: Coronavirus

lord german: To ask Her Majesty's Government whether arts organisations in receipt of public money will have to repay that money if they cannot meet the grant payment requirements due to the COVID-19 pandemic.

baroness barran: The majority of Government funding for arts organisations and individuals is provided through our arm’s length body Arts Council England (ACE). From the funding received ACE provides grants to over 800 National Portfolio organisations (NPO’s) and funds 30 Creative People and Places projects across the UK. ACE operates independently of Government, which protects both ACE and DCMS from questions of any political involvement in arts funding decisions. During the Covid 19 pandemic ACE will be relaxing its funding conditions for National Portfolio Organisations and Creative People and Places projects where necessary, and are currently talking to each of them about how this will work. Grant conditions will also be relaxed on existing National Lottery Project Grants where necessary, and ACE will be providing more information on its website. These measures, in conjunction with the initiatives announced by the Chancellor of the Exchequer to support businesses and organisations that have been impacted by the pandemic, such as the Coronavirus Business Interruption Loan Scheme and the deferral of VAT payments for the next 3 months, will provide organisations with more financial support during this period of uncertainty.

Department for Environment, Food and Rural Affairs

Plastic Bags: Fees and Charges

lord hayward: To ask Her Majesty's Government, further to the Written Answers by Lord Goldsmith of Richmond Park on 6 March (HL1745 and HL1746), whether they intend to publish the revised impact assessment agreed by the Regulatory Policy Committee; if so, when; and what plans they have to identify the differences between that assessment and their initial assessment.

lord goldsmith of richmond park: The Government will publish the revised impact assessment, which has been assessed as fit for purpose by the Regulatory Policy Committee, alongside the summary of the responses to the consultation and the Government response setting out next steps.

Northern Ireland Office

Army: Northern Ireland

lord empey: To ask Her Majesty's Government what plans they have to treat former members of the Ulster Defence Regiment and the Royal Irish Regiment who served in Northern Ireland in the same manner as soldiers who served both overseas and in Northern Ireland in the conduct of any investigations into allegations of historic misconduct, and any resulting prosecutions and claims for compensation.

lord empey: To ask Her Majesty's Government whether they planto make any distinction between (1) regular soldiers who served in Northern Ireland, and (2) soldiers of the Ulster Defence Regiment and Royal Irish Regiment recruited locally during the Troubles, in any proposals they may bring forward to address legacy cases in Northern Ireland.

viscount younger of leckie: This Government is committed to ending vexatious claims in the courts against members of our security forces. We have always been clear that any legacy reform must be balanced and proportionate, and it must deliver for all communities in Northern Ireland. We will now begin a period of intensive engagement with the NI Parties and the Irish Government and other stakeholders on the detail of the proposals that have been set out.

Criminal Investigation: Northern Ireland

lord empey: To ask Her Majesty's Government what is their definition of"compelling new evidence" for any investigation of cases related to the Troubles in Northern Ireland.

viscount younger of leckie: The Government is committed to addressing the legacy of the past in Northern Ireland in a way that focuses on reconciliation, delivers for victims, and ends the cycle of reinvestigations into the Troubles in Northern Ireland that has failed victims and members of the security services alike. The Government will be engaging intensively with the Northern Ireland parties, Irish Government, and other key stakeholders over the coming weeks on the detail of the proposals that have been set out.

Royal Ulster Constabulary

lord empey: To ask Her Majesty's Government what plans they have to make public funds available to former members of the Royal Ulster Constabulary to support their defence during any investigation into their actions during the Troubles in Northern Ireland.

viscount younger of leckie: The courage and professionalism of the police and other security forces cannot be underestimated and this Government remains committed to ending the cycle of reinvestigations into the Troubles in Northern Ireland. Funding of legal support for former members of the Royal Ulster Constabulary is devolved and a matter for the Northern Ireland Executive.

Royal Ulster Constabulary

lord empey: To ask Her Majesty's Government what plans they have to establish a specific body to deal with legacy issues in Northern Ireland; andwhether any such bodywould be able to issuereports to families about allegations of non-criminal misconduct against former Members of the Royal Ulster Constabulary, whether living or deceased.

viscount younger of leckie: The Government remain committed to introducing legislation that will reform the legacy system in line with our commitments set out in ‘New Decade, New Approach’. We intend to bring forward measures which focus on reconciliation and information recovery, which is most likely to help families find out what happened to their loved ones and help Northern Ireland look to the future. Further detailed proposals will be provided in due course and we will be engaging with the NI parties and Irish Government in the coming weeks.

Treasury

Infrastructure: Lancashire

lord greaves: To ask Her Majesty's Government which of the schemes for infrastructure investment announced in the Budget 2020 on 11 March will take place in (1) East Lancashire inclusive of Blackburn, Darwen, Burnley, Hyndburn, Pendle, Ribble Valley and Rossendale, and (2) Blackpool and the remaining Districts in Lancashire; and what is their estimated cost in each case.

lord agnew of oulton: The Budget demonstrated the Government’s commitment to levelling up opportunity in every region and nation in the United Kingdom. For example, the Government is investing £700m on major strategic road schemes; as part of that, there will be improvements to the A585 Windy Harbour to Skippool. Lancashire will also benefit from £140m from the Housing Infrastructure Fund for the “South Lancaster Growth Catalyst” proposal, as well as £40m for Preston City Region through the Transforming Cities Fund to deliver a new station at Cottam Parkway on the Preston-Blackpool line. More widely, the North West will benefit from a variety of other major infrastructure announcements ranging from broadband to flooding and coastal defence investment.

Financial Markets

lord myners: To ask Her Majesty's Government whether the recent equity market falls have surpassed stress test levels used to determine the capital adequacy of central clearing houses supervised by theFinancial Conduct Authority.

lord agnew of oulton: Central clearing houses, or central counterparties (CCPs), are financial institutions firms use to manage some of the risks arising from traded markets. UK CCPs are subject to many requirements to manage financial risk, including maintaining risk models to quantify the level of financial resources they need to operate safely. As such, it is right that the level of resource held by CCPs is subject to rigorous and frequent internal stress tests, as set out in the legislation that governs them. These stress tests assess the resilience of a CCP in extreme but plausible market conditions. Furthermore, UK CCPs remain subject to EU-wide stress tests during the Transition Period. The Bank of England supervises UK CCPs as part of its financial stability objective. However, it is not possible to publicly disclose specific quantitative details on individual firm’s stress tests because this is firm sensitive information.

Financial Services

lord myners: To ask Her Majesty's Government what plans they have to issue guidance to (1) unit trust, and (2) open-ended investment company, managers to limit fund redemptionsinstead ofobliging fund managers to be forced sellers of shares and bonds.

lord myners: To ask Her Majesty's Government whetherthey have issued any guidance (1) to fund managers on statements related to restricting redemptions of investments of open-ended funds, and (2) on whether fund managers may issue statements that fund investors will never be gated.

lord agnew of oulton: The government is committed to ensuring that the UK has a robust framework for regulating financial services and that consumers are treated fairly. There are a range of existing rules in this area and there is work underway to address ‘liquidity mismatch’ in open-ended funds and to protect consumers. Financial services firms are required to treat customers fairly under rules set by the Financial Conduct Authority (FCA), and the FCA is responsible for overseeing the conduct standards of financial services firms. There are already a number of rules on eligible assets, which aim to protect consumers. Such rules apply to both types of fund that can be sold to retail investors – UCITS and non-UCITS retail schemes. Additionally, in September, the FCA published a policy response to their consultation on illiquid assets and open-ended funds. This outlined new rules for certain structures that invest in illiquid assets, which will come into effect in September 2020. The new rules will include a requirement that non-UCITS retail schemes investing in inherently illiquid assets must suspend dealing where the independent valuer determines there is material uncertainty regarding the value of more than 20% of the fund’s assets. The FCA is also currently working with the Bank of England’s Financial Policy Committee to assess how funds’ redemption terms might be better aligned with the liquidity of their assets. Fund suspensions can be a necessary safety feature which ensures that a fund is not forced to sell assets at a distressed market price, which would lead to further losses for end investors in the fund. FCA rules permit suspensions, which may last for as long as is necessary to protect the interests of the remaining investors in the fund.

Insurance: Coronavirus

lord hodgson of astley abbotts: To ask Her Majesty's Government what plans they have to discuss with the insurance industry the implications of COVID-19 for firms which have taken out pandemic insurance.

baroness mcintosh of pickering: To ask Her Majesty's Government what steps they are taking to ensure that commercial businesses seeking insurance payouts for cancellations or closures due to COVID-19are covered.

lord agnew of oulton: The Chancellor has made clear that, for those businesses which have an appropriate policy that covers pandemics, government’s medical advice of 16 March is sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met. In addition, the FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. However, most businesses have not purchased insurance that covers pandemic related losses. As such, any affected businesses should note the government’s full package of support. The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation.

Banks: Finance

lord myners: To ask Her Majesty's Government whether it is their policy to use counter cyclical capital adjustments for banks to enhance resilience in order to cope with economic downturns; and whether they mandate regular stress tests.

lord agnew of oulton: The Financial Policy Committee (FPC) of the Bank of England is prescribed the power to set the countercyclical capital buffer (CCyB) rate for the United Kingdom. The FPC has set out its approach to the use of the CCyB in a Policy Statement published in April 2016 on the Bank of England website. As part of a wider package of measures announced by the Bank of England’s policy committees in response to the economic shock of Covid-19, the FPC reduced the UK CCyB to 0% on 11 March. This will support up to £190 billion of bank lending to businesses. The Bank of England undertakes an annual stress test of major UK banks to examine the potential impact of a hypothetical adverse scenario on the resilience of the banking system. The 2019 stress test showed the banking system to be resilient to a scenario encompassing deep simultaneous recessions in the UK and global economies that are more severe overall than the global financial crisis, combined with large falls in asset prices and a separate stress of misconduct costs. On 20 March the Bank of England announced it would cancel the 2020 stress test to ensure lenders can focus on meeting the needs of UK households and businesses through the economic shock caused by Covid-19.

Financial Services

lord myners: To ask Her Majesty's Government whether they, or the Financial Conduct Authority,monitor whether trade receivables included in securitised bonds (1) reflect transactions completed, or (2) can also include transactions yet to be completed or documented by the two sides to the expected transaction; and whether they have discussed this with theFederal Financial Supervisory Authority in Germany.

lord agnew of oulton: The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are responsible for monitoring risks in the UK securitisation market, in line with their statutory objectives. In January 2019, the EU Securitisation Regulation (Regulation 2017/2407) became applicable in the United Kingdom. Consistent with this Regulation, the Government and the FCA expects that underlying exposures transferred to a securitisation vehicle, including trade receivables, contain obligations which are contractually binding and enforceable. In trade receivable transactions, goods or services to which the credit claims refer may be delivered later and be deficient. Such a risk is often quantified as a matter of routine in securitisation transactions. The Government expects relevant market participants to conduct due diligence where required. The FCA and the PRA apply a risk-based supervision of the securitisation market and can choose to undertake a thematic analysis of the market, including on trade receivables financing. The FCA maintains bilateral relationships and collaborates effectively with the regulatory and supervisory authorities of other countries, including Germany.

Small Businesses: Insurance

lord bassam of brighton: To ask Her Majesty's Government what discussions they have had with insurers and the Association of British Insurers about (1) the current, and (2) the future, levels of insurance required to prevent small and medium sized enterprises from becoming bankrupt as a result of COVID-19.

lord agnew of oulton: The Government is in continual dialogue with the insurance sector about its contribution to handling this unprecedented situation. In addition, the Chancellor has made clear that, for those businesses which have an appropriate policy that covers pandemics, the Government’s medical advice of 16th March is sufficient to allow businesses to make a claim against their insurance, provided the other terms and conditions in their policy are met. The FCA’s rules require insurers to handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed. However, most businesses have not purchased insurance that covers losses from COVID-19. The Government recognises that businesses who do not have appropriate insurance cover will require support from elsewhere. As such, businesses should explore the full package of support set out by the Chancellor in the Budget and on 17 March, which includes measures such as business rates holidays and the Coronavirus Business Interruption Loan Scheme. The Chancellor has announced two packages to support the people and businesses of the UK: a three-point plan providing £12 billion of support for public services, individuals and businesses whose finances are affected by the outbreak; and a package to provide further support for businesses and individuals totalling £350bn.